Replacing combustible cladding – help from councils

Local councils can provide owners or owners corporation with a long term, low interest loan in order to replace combustible cladding. New legislation enables owners or owners corporations to enter into a Cladding Rectification Agreement (CRA). The loan will be repaid in equal instalments together with the council rates spread over a minimum period of 10 years and will appear as a ‘cladding rectification charge’ on the rates notice. The loan attaches to the property and will be transferred to any new owner of the property.

If you are an owners corporation then 75% of owners corporation members must vote to enter into a CRA and details of mortgages on each lot will need to be provided.

The provisions relating to CRAs are proposed to come into operation on 30 October 2018.